Buy BMNR Stock At $36?

BMNR stock has experienced a notable 17% increase over the past week, with current trading around $36. This rise can be attributed to several important factors: the company’s proactive acquisition of Ethereum (ETH) tokens, a corresponding recovery in the ETH price (which has climbed above $3,000 after falling below $2,800 in late November), and a favorable market outlook. This positive sentiment is bolstered by the company’s impressive financial reports and optimistic macroeconomic perspectives shared by its chairman. Additionally, see What Morgan Stanley’s Downgrade Means For Tesla.

Despite the positive trend, BMNR stock presents a contradiction. Current analyses indicate a lack of significant concern regarding the company’s fundamentals. However, the stock’s current valuation seems inflated, presenting a risky proposition at this price point.
This assessment is derived from a comprehensive evaluation that compares the present valuation of BMNR stock against its operational performance in recent years as well as its current and historical financial status. An extensive review of BitMine Immersion Technologies across key parameters such as Growth, Profitability, Financial Stability, and Downturn Resilience, shows that the company maintains a moderate operational performance and a stable financial condition.

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Image by A M Hasan Nasim from Pixabay

How Does BitMine Immersion Technologies’ Valuation Compare To The S&P 500?

When evaluated based on the price paid per dollar of sales or profit, BMNR stock appears pricey in relation to the broader market.

• BitMine Immersion Technologies boasts a price-to-sales (P/S) ratio of 1360.1 compared to a figure of 3.2 for the S&P 500
• Moreover, it has a price-to-earnings (P/E) ratio of 23.8 against the benchmark’s 23.3

How Has BitMine Immersion Technologies’ Revenue Grown In Recent Years?

BitMine Immersion Technologies’ revenues have risen significantly over the past few years.

• BitMine Immersion Technologies has observed its top line grow at an average rate of 248.5% over the last 3 years (in contrast to an increase of 5.5% for the S&P 500)
• Its revenues have increased by 84.1% from $3.3 million to $6.1 million in the last 12 months (against a growth of 6.0% for the S&P 500)
• Additionally, its quarterly revenues grew by 94.2% to $1.3 million in the latest quarter from $0.7 million a year prior (as opposed to a 7.0% improvement for the S&P 500)

How Profitable Is BitMine Immersion Technologies?

BitMine Immersion Technologies’ profit margins are inferior to most companies within the Trefis coverage universe.

• BitMine Immersion Technologies’ Operating Income over the last four quarters stood at $-363 million, indicating a very poor Operating Margin of -5949.7% (compared to 18.8% for the S&P 500)
• In the last four-quarter period, BMNR’s Net Income was $349 million—suggesting a notably high Net Income Margin of 5719.1% (against 13.1% for the S&P 500)
• The significant gap between BitMine Immersion Technologies’ negative operating income and its positive net income is primarily due to a substantial, non-cash mark-to-market accounting gain on its Ethereum (ETH) holdings, recorded as a non-operating item.
• The $-363 million operating loss clearly shows that the company’s core business operations—crypto mining and immersion cooling—are currently unprofitable, as operating expenses exceed revenue. Conversely, the $349 million net income includes this non-operating item. Specifically, the large gain is attributed to an $805 million non-cash mark-to-market adjustment recognizing the appreciated valuation of BMNR’s expanding Ethereum treasury during this timeframe.

How Resilient Is BMNR Stock In A Downturn?

BMNR stock has performed worse than the benchmark S&P 500 index during several recent downturns. Concerned about how a market crash could affect BMNR stock? Our dashboard Is BitMine Immersion Technologies Stock Built to Withstand a Pullback? provides a detailed analysis of how the stock has fared during and after past market crashes.

Inflation Shock (2022)

• BMNR stock dropped 88.0% from a peak of $74.80 on 22 March 2022 to $9.00 on 10 May 2023, compared to a peak-to-trough downturn of 25.4% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 3 July 2025
• Since that recovery, the stock has reached a high of $135.00 on 6 July 2025 and is currently trading around $36

COVID-19 Pandemic (2020)

• BMNR stock fell 45.3% from a high of $30.00 on 23 February 2020 to $16.40 on 16 March 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 13 April 2020

Putting It All Together: Implications For BMNR Stock

In conclusion, BitMine Immersion Technologies’ performance across the parameters mentioned above is summarized as follows:

• Growth: Very Strong
• Profitability: Weak
• Downturn Resilience: Weak
• Overall: Moderate

Although BitMine Immersion Technologies scores moderately across essential operational metrics, its high valuation introduces risk to the stock. Nevertheless, traditional valuation measures may not truly represent the situation for companies like BMNR, which maintain significant crypto assets. For these stocks, the primary value is rooted in their digital asset holdings. Currently, BMNR possesses over $13 billion in Ethereum (ETH), with its market capitalization at approximately $13.8 billion. This suggests a Market Cap-to-Net Asset Value (MNAV) ratio of 1x. Given this alignment between market cap and crypto holdings, investors who have confidence in the long-term growth prospects of Ethereum may consider BMNR stock a worthwhile investment at its current levels.

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